MINNEAPOLIS--(BUSINESS WIRE)--As recently reported in the Star Tribune, Traction Capital, a Minneapolis based hybrid private equity and venture capital firm, announced the launch of the first of its Focus Funds dedicated to making investments in, or acquisitions of, early stage and lower middle market companies that are stuck in the “capital gap.” The fund, with $15 million targeted and $5 million already committed, will invest in high potential businesses with a focus on promising companies that are owned and operated in Minnesota.
Traction Capital was founded with a belief that it can provide higher valuations, greater influence, faster growth and ultimately stronger returns on capital by investing more than just financial capital in its portfolio companies. By leveraging the relevant experience and knowledge of their impressive roster of investors, the firm will also provide businesses with valuable human and intellectual capital using a proven business management process that will help accelerate growth and profitability.
Traction Capital is directed by Managing Partner, Shane Erickson, who also oversees the Focus Funds. Erickson is the former CEO and Co-Founder of IMC, a Minnesota based marketing and promotions company. He is an experienced investor with notable success as a venture capitalist including investments with exits in Mentormate and Ultralox. Erickson founded Traction Capital "to help both entrepreneurs and investors get what they want for the greater good.”
Erickson is supported by fellow entrepreneurs and investors including Andrew Duneman (Bulkreefsupply.com), Dan Mallin (Equals 3, Minnesota Cup), Ed Peterson (Ultralox), Jeff Fritz (Revel Health, Lighthouse 1), Jeff Hausmann (Cedar Valley Exteriors), John Folkestad (Salo), Julie Fallenstein (Fun.com), Matt Meents (Yardstik, Magnet 360), Scott Litman (Equals 3, Minnesota Cup), Tom Fallenstein (Fun.com), and Wade Burgess (Ultralox).
“Minnesota has no shortage of great ideas and capable entrepreneurs, but funding availability for these ventures at the early stages lags badly as compared to Silicon Valley, Boston, and other areas with a significant amount of start-ups and early stage ventures,” said Traction Capital investor and Minnesota Cup Founder Scott Litman. “Traction Capital will be a great complement for Minnesota Cup and other organizations and initiatives that are dedicated to promote and enable the success of entrepreneurism in Minnesota.”
The fund has already identified several potential investments and has established an existing pipeline of deals in various stages of review. Interested accredited investors and entrepreneurs are invited to learn more about Traction Capital by contacting Shane Erickson at shane@tractioncapital.com.
About Traction Capital
Traction Capital is a Minneapolis based hybrid private equity and venture capital firm dedicated to making investments in, or acquisitions of, early stage and lower middle market companies that are stuck in the “capital gap” through its Focus Funds that target high potential businesses with a focus on companies based in Minnesota.
Learn more about Traction Capital at www.tractioncapital.com.